Peloton is temporarily halting production of its connected fitness products as consumer demand wanes and the company looks to control costs, according to internal documents obtained by CNBC.
Click here to read the story at cnbc.com
Discussion Questions:
- What is inventory?
- Why is managing inventory a critical component to the success of a company like Peloton?
- What is supply and demand?
- How does the concept of inventory relate to supply and demand?
- Why do you think the demand for Peloton’s products has declined?
- Based on information from this story, why has Peloton halted production of its bikes and treadmills?
- According to this story, Peloton will soon be introducing a signifcant charge for shipping and delivery. Why?
- How do you think the added cost to consumers might impact sales?
- In your opinion, will demand for Peloton products increase again in the future or do you think the company should be concerned about its long term viability? Be prepared to discuss your answers in class.